Saturday, April 20, 2024

Plevin Claim: What Is It and How Does It Impact Me?

With the PPI claim deadline passing on 29th August 2019, many banks and financial institutions all over the United Kingdom breathed a sigh of relief. However, they did not realize that they have more dues to pay.

Most mis-sold PPI claim compensation can’t be recovered, due to the deadline. However, if your PPI mis-selling occurred due to the same kind of incident as the ‘Plevin’ case, you may still receive compensation—and that includes those whose claims were rejected in the past!

As government data suggests, over a million people may have been affected and might be eligible for making a Plevin claim. So before you can figure out what kind of impact Plevin may have on you, you first need to fully understand what these claims are.

Hidden PPI Commissions

Did you know that an average of 67 percent of PPI premiums that the affected UK borrowers paid to the lenders went into a hidden commission? This often happens when an agent, broker, or any other third party sold people a PPI agreement from a lending institution.

In many cases, the bank or the lender chose to not disclose this hidden or secret commission, even though they are bound by law to reveal all the fees of a sold PPI to the buyer.

This commission generally went to the agent/broker who sold the PPI at a bank/lender’s behest or was divided between the two parties. It is not enough to simply imply that there might have been a commission.

Both the representative and the lender can be held liable if such a commission was not revealed when the PPI was sold to you, as not doing so is considered a fraud and is punishable by law. These hidden commissions are the reason behind the existence of the Plevin claim.

What Is the Plevin Claim?

If the PPI mis-selling was due to a high hidden commission, you may qualify for receiving a Plevin claims compensation, even though the PPI deadline has passed. So what exactly is the Plevin claim?

The Susan Plevin Case

For years, people have filed complaints against the unfairness of some PPI that was attached to most loans and cards, back in the day. One such individual was Mrs. Susan Plevin, but her case was a little different from many others.

She had taken out a loan from Paragon Personal Finance Ltd. They also sold her the PPI along with the loan, which she paid premiums for. She later found out that 71.8 percent of the premium was a commission. She didn’t know about this commission, nor did she know who this money was going to.

She took this case to the court, and Judge Lord Sumption of the Supreme Court at that time came to the conclusion that this commission being undisclosed caused a ‘sufficiently extreme inequality of knowledge and understanding.’ The judge deemed this as unfair, along with the fact that they’d crossed the boundary of commission when it is too much and is extortion towards the borrower.

The Outcome

Due to Susan Plevin’s brave initiative, this kind of unfair PPI mis-selling was brought forward to the court, which led to the court ruling known as the Plevin claim. Thanks to Mrs. Plevin, anyone who was sold a PPI that had a high undisclosed commission should be able to make a compensation claim.

How Is Plevin Different from Mis-sold PPIs?

Mis-sold PPI is what made the government take action against banks and other lending institutions. PPI is considered mis-sold under the following circumstances:

  • You did not know the lenders had sold you a PPI. If you knew, you would have never bought it.
  • You never wanted a PPI but were sold one anyway.
  • You were pushed into buying one and were led to believe it was compulsory.
  • You were made to believe that without the PPI you wouldn’t receive the loan, card, etc.
  • You did not understand the terms of the PPI you were sold, and the lender/agent never explained it to you properly.

Even though most people thought that the mis-sold PPI scandal was coming to an end, those who fall under the Plevin claim can still get compensation. Yes, the Plevin claim is also for a kind of mis-sold PPI, but it is still different from regular mis-selling cases. This is because the Plevin claim falls under a different category—the Consumer Credit Act 1974. This means that there is no end to when you can claim your Plevin compensation!

How Can the Plevin Claim Impact You?

According to the Plevin ruling, if over 50 percent of the PPI value went to a secret commission that was enjoyed by the agent or the lending institution or both, and it was not explained or revealed to you, you are entitled to get compensation.

There are a few conditions that need to be met if you want to consider whether the Plevin Claim can have an impact on you. If you want to be eligible for the Plevin Claim, your case needs to meet the following conditions:

  • You were sold the PPI before 6th April 2007 and it was open after 6th April 2008.
  • You were sold the PPI after 6th April 2007.
  • You never made any complaints about mis-sold PPI.
  • You made a PPI claim and it was rejected.
  • They made a tipping point offer and you received only a partial payment for your compensation.

The Next Step

If you are eligible for the Plevin PPI claim, the next step to take is to hire an informed solicitor or a law firm. They can walk you through the process and help you understand what you have to do next. They will contact the lending institution or agent through which you made the loan and gather all the necessary information.

Some companies are solely focused on claims and will have the necessary resources and even software that can help them get you your compensation. A few do not charge any money and only take a commission after you receive your compensation.

Final Thoughts

Now that you know what a Plevin claim is, you can try to get compensation if this impacts you and any PPI you paid for with a loan you have taken. Remember that Plevin’s claim has no deadline, and you can get compensation any time! So figure out whether you are eligible and arm yourself with the help of some good solicitors who can help you claim your compensation.

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